Comments on: BC strata a legal minefield

By: Robin

Robin — Fri, 18 Apr 2008 19:41:44 +0000

Wow, no audit? I used to be the treasurer of a student residence in Ontario, and even WE had to have an annual audit. And even WITH an audit, years of incompetence still left us with inadequate capital reserves and a precarious future.

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By: RJB

RJB — Thu, 17 Apr 2008 20:37:56 +0000

"Lack of a requirement for a depreciation report or reserve fund study to inform owners and purchasers of the financial implications of the condition of common property, " I assume strata fees cover the maintenance of elevators, but what about major repairs and upgrades to elevators? If you need to replace the ropes, motor, travelling cables, etc. they must do a special assessment.

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By: LaLaLand

LaLaLand — Thu, 17 Apr 2008 20:19:23 +0000

Strataman, Thanks for the info...truly shocking state of affairs. Since the strata form of ownership is relatively new to a lot of buyers (majority these days?), I suspect their ignorance (like mine) is vast as to how they are operated or the implications thereof. Sounds like a time bomb on the management side. It takes time, effort, and competence to manage anything. Looks like the idea that condo's are a carefree, hassle free form of home ownership (lock the door everyday and don't worry about anything else, cause the Council or Property Management company is managing everything)is going to haunt some unaware buyers.

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By: Strataman

Strataman — Thu, 17 Apr 2008 19:19:08 +0000

LaLa "Aren’t the annual statements always audited?" Amazing isn't it? No the accounts are not required to be Audited, a strata "treasurer" strata self appointed volunteer normally, is the only check on mis-appropriation of funds. The property management company will have a CGA doing the work and will sign of on it. No independent non conflicting third party audit is done. Absolutely stunned me when I learned this some years back, and has now helped me decide that strata's are a complete conflict of interest prone form of government. Property Managers are not "Managers" they are agents for the owners, which primarily means they do the strata council bidding, no questions neccessarily asked. My experience with dozens of strata councils shows a high level of incompetence and personal conflict of interest, and virtually no checks or balances.

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By: DEFAULT NAME

DEFAULT NAME — Thu, 17 Apr 2008 19:15:25 +0000

While the bulls continue to believe that Vancouver is different, this "real estate boom is officially over" gives an opportunity to pack up the bags and move to lower cost places other parts of this country.

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By: Coton

Coton — Thu, 17 Apr 2008 18:56:25 +0000

Off Topic but Found in Globe & Mail Today.

Real Estate Boom is Officially Over

http://www.reportonbusiness.co.....iness/home

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By: LaLaLand

LaLaLand — Thu, 17 Apr 2008 18:30:25 +0000

I am quite shocked by bullet points #2 and #3. I'm a renter, never owned a condo, but wouldn't it be a normal fiduciary duty of the strata Board to report on the condition of the common property as well as the financial implications? The annual financial statements would report on amortization/depreciation - a starting point at least for discussion with owners. Aren't the annual statements always audited?

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